Dredging Corp’s Rs 61.87 cr operating profit fell to Rs 11.50 cr before tax
Depreciation and interest absorbed much of operating profit, while the 2.26% tax rate supported standalone net profit of Rs 11.24 cr.
Filed 04 Aug 2026, 18:23 IST · after market close · DREDGECORP (DREDGECORP)
Key takeaways
- Standalone operating profit of Rs 61.87 cr translated into a 17.41% operating margin in Q1FY27.
- Depreciation of Rs 41.53 cr and interest of Rs 9.88 cr reduced operating profit to profit before tax of Rs 11.50 cr.
- Net profit of Rs 11.24 cr was aided by a 2.26% tax rate, while other income of Rs 1.03 cr was not the main support.
Operating profit did not carry through to pre-tax earnings
Dredging Corp reported standalone revenue of Rs 355.43 cr against expenses of Rs 293.56 cr, leaving Rs 61.87 cr of operating profit. The larger issue was below the operating line: depreciation and interest together reduced this to Rs 11.50 cr before tax. Operating margin was therefore 17.41%, but it did not translate into a similar level of pre-tax profitability.
Low tax rate lifted earnings conversion
Depreciation of Rs 41.53 cr was the main charge below operating profit, with interest adding Rs 9.88 cr. Tax was only Rs 0.26 cr, equivalent to a 2.26% tax rate, which supported net profit of Rs 11.24 cr. Other income of Rs 1.03 cr was small relative to profit before tax, so profit quality was shaped more by the low tax charge than by non-operating income.
Results were filed after market close
The company filed its unaudited standalone results after market close on 4 August 2026. The next reported quarter can be assessed for whether operating profit converts more fully into pre-tax earnings after depreciation and interest.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹355 cr |
| Other income | ₹1 cr |
| Expenses | ₹294 cr |
| Operating profit | ₹62 cr |
| Operating margin (%) | 17.41% |
| Interest | ₹10 cr |
| Depreciation | ₹42 cr |
| Profit before tax | ₹12 cr |
| Tax | ₹0 cr |
| Net profit | ₹11 cr |
| EPS (₹) | ₹4.01 |
What to watch
- Whether operating margin holds around 17.41%.
- Whether profit before tax improves from Rs 11.50 cr after depreciation of Rs 41.53 cr and interest of Rs 9.88 cr.
- Whether the tax rate remains close to 2.26%.